Suppose consumers value a high-quality used laptop computer at a price of $400, while they value a low-quality used laptop at $100. The supply of high-quality laptops is QH = PH – 100, while the supply of low-quality laptops is QL = 2PL – 50. Potential buyers cannot tell the difference between high-quality and low-quality laptops when purchasing one.
Assume that buyers believe there is a 50% probability that a used laptop will be of high quality. What would be the price that buyers are willing to pay for any used laptop?
Buyers should be willing to pay $ 41Dsc0MgTfvXOj7B
Suppose consumers value a high-quality used laptop computer at a price of $400, while they value a low-quality used laptop at $100. The supply of high-quality laptops is QH = PH – 100, while the supply of low-quality laptops is QL = 2PL – 50. Potential buyers cannot tell the difference between high-quality and low-quality laptops when purchasing one.
If the price of a used laptop is $250, how many high-quality laptops will be offered for sale? How many low-quality laptops?
IJaWHrT39D4= high-quality laptops will be offered for sale.
0xEo++/k6eQ= low-quality laptops will be offered for sale.
Suppose consumers value a high-quality used laptop computer at a price of $400, while they value a low-quality used laptop at $100. The supply of high-quality laptops is QH = PH – 100, while the supply of low-quality laptops is QL = 2PL – 50. Potential buyers cannot tell the difference between high-quality and low-quality laptops when purchasing one.
Suppose consumers value a high-quality used laptop computer at a price of $400, while they value a low-quality used laptop at $100. The supply of high-quality laptops is QH = PH – 100, while the supply of low-quality laptops is QL = 2PL – 50. Potential buyers cannot tell the difference between high-quality and low-quality laptops when purchasing one.